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Porter’s 5 Forces: Retail 2021

Who has retail power?

Porter’s 5 Forces model helps to explain market influences as retail undergoes tremendous upheaval.

To manage fierce competition, companies can boost their bargaining power if they:

  • Differentiate their offerings
  • Reflect in-demand consumer trends
  • Invest in e-commerce for omnichannel agility

Also, as tech-driven supply chains grow in power, companies are establishing strategic partnerships to delight consumers with convenience and quality.


UPDATE: August 30, 2021

 

Amid market volatility, power continues to shift across global retail players.

 

This piece from March can be amended with market factors growing in influence like:

 

BUYERS:
To increase supply chain control and access to products, Walmart chartered ships and Canadian Tire invested in a shipping port

 

SUPPLIERS:
Brands are investing in digital ads for marketing muscle as e-commerce gets more crowded

 

NEW ENTRANTS:
TikTok deserves a mention, as tech giants desire a piece of the e-commerce action

 

RIVALRY:
As workers embrace the Great Resignation, Walmart and Target invest in employees’ college degrees to navigate the labor shortage

 

 

Which force do you think is most powerful in retail today?

Related:
2021 Retail Strategy Trends
2021 Retail PEST Analysis

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